Elon Musk's xAI Acquires X for $33 Billion
Elon Musk's xAI Acquires X for $33 Billion
Elon Musk has announced that his artificial intelligence company, xAI, has acquired his social media platform X in an all-stock transaction valued at $33 billion, plus $12 billion in debt. This deal brings the combined valuation of xAI to $80 billion. Musk initially purchased Twitter for $44 billion in late 2022, rebranding it as X on July 23, 2023. The platform currently boasts approximately 611 million monthly active users globally.
Musk emphasized the strategic alignment between xAI and X, stating, "xAI and X's futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution, and talent." He believes this merger will unlock immense potential by integrating xAI's advanced AI capabilities with X's extensive reach, delivering smarter and more meaningful experiences to billions of users.
Both companies are headquartered in the San Francisco Bay area. xAI, founded by Musk in March 2023, focuses on using artificial intelligence to understand and generate human-like text. The company's products include Grok, Aurora, and PromptlDE. X, which has around 1,500 employees, has seen a significant reduction from its pre-acquisition workforce of approximately 7,500.
This acquisition is part of Musk's broader vision to leverage AI and social media to accelerate human progress and seek truth. It also follows his earlier efforts to influence the direction of AI development, including his attempt to take over OpenAI, the creator of ChatGPT, in February.
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